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Finance Glossary

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Over 700 finance terms, Shmooped to perfection.

Misappropriation

Definition:

Misappropriation can have multiple meanings, but for the purposes of the Series 63 exam, it commonly refers to the misappropriation of client funds, or when a member firm uses client funds in an inappropriate or unauthorized way. Under FINRA Rule 3070, member firms must report this activity if discovered by any employee or person associated with the member firm.

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